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Groupe Aeroplan Announces European VAT Ruling

MONTREAL, Oct 7 - Groupe Aeroplan Inc. (TSX : AER) today
announced that its European division, Groupe Aeroplan Europe, has been
notified of the result of its outstanding Value Added Tax (VAT)
litigation. The European Court of Justice (ECJ) has ruled against Groupe
Aeroplan Europe and in favour of HM Revenue & Customs. The case will be
referred back to the UK Supreme Court for judgment based on the guidance
of the ECJ.

The possibility of an adverse judgment was contemplated at the time of
the purchase of Loyalty Management Group in 2007 and accordingly the
purchase consideration was subject to a holdback of £27.1m which was
placed into an escrow account. This amount will be released from escrow
to Groupe Aeroplan and used to partially fund the VAT payable. There
will be a net one-time non cash charge of approximately £33m which will
affect Adjusted EBITDA, reflecting the repayment of historic input tax
credits and a £13m one-time cash outflow, which includes interest
charges.

Groupe Aeroplan Europe is well prepared to mitigate any ongoing increase
in the cost base resulting from the ruling. In addition the findings of
the judgment may provide some scope to assist in this mitigation.

About Groupe Aeroplan Inc.Groupe Aeroplan Inc., a global
leader in loyalty management, owns Aeroplan, Canada's premier coalition
loyalty program, Carlson Marketing, an international loyalty marketing
services, engagement and events provider headquartered in the U.S., as
well as Nectar, the United Kingdom's largest coalition loyalty program.
Groupe Aeroplan also operates LMG Insight & Communication, an
international customer-driven insight and data analytics business. In
addition, Groupe Aeroplan has majority equity positions in Air Miles
Middle East and Nectar Italia as well as a minority position in Club
Premier, Mexico's leading coalition loyalty program.

Caution Concerning Forward-Looking StatementsCertain
statements in this news release may contain forward-looking statements.
These forward-looking statements are identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements, by their nature, are based on assumptions and are subject to
important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, among other
things, changing external events and general uncertainties of the
economy and the business of Groupe Aeroplan and its partners. Results
indicated in forward-looking statements may differ materially from
actual results for a number of reasons, including the factors identified
throughout Groupe Aeroplan's public disclosure record on file with the
Canadian securities regulatory authorities. The forward-looking
statements contained in this news release represent Groupe Aeroplan's
expectations as of October 7, 2010, and are subject to change after such
date. However, Groupe Aeroplan disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of
new information, future events or otherwise, except as required under
applicable securities regulations.